Big Data and the Value of Automated Data Capture

9 Apr , 2015

The development of analytics that can process data and lead to automation and the removal of workers is very much discussion today. We read about artificial intelligence concerns from technology leaders like Bill Gates and economic leaders like Larry Summers. In fact, the use of data and analytics has been removing jobs from various industries for decades. Just think about the last time you used a travel agent to book a flight. It is not just that machines can now do the jobs of what we did in the past; it is that the capture of data is now automated. That is a big game changer.

The Internet was a big enabler of such automation of data capture. On the surface, it looked like the Internet was just a convenience to customers, but it also enabled easy data capture by the retailer. Perhaps, early on, this advantage was not obvious. In reality, this data capture on websites was implicit in the operations of the website. Operating a website and processing an order required (implicitly) that the retailer have your name, address, email address, and such data. From the beginning this gave Amazon and other Internet giants an edge over brick and mortar stores. For brick and mortar stores to ask for and collect customer data, they had to offer loyalty programs and give up some margin to the customer for participating. Internet firms got customer data just by operating. Customers granted that such data was needed to fulfill the transaction. Internet firms got smarter about this and began to recognize returning customers and auto-populating customer data fields. Amazon, as an example, developed many login conveniences and even purchasing conveniences that allowed users to share their data once and have it recognized automatically forever. It turns out that automatic or nearly automatic data capture was a huge advantage. This enabled a drastic change in the interface between customers and firms.

Today, of course, automated data capture is being made even easier by the next generation of web mining processes that track our every move on a website. With data and lots of it, firms like Amazon, eBay, and Google could create Big Data assets and leverage analytics to find business and economic truths in the data. It totality, it has allowed for automated decisions or other data-driven processes that could even replace humans.

It is important to point out that in these examples, the most critical step is the automation of data capture. Early websites required that we enter data (once). Today, our phones recognize our physical location and automatically respond to it. This ability to capture data with little or no human activation is very valuable. It is the basis for advanced automation and decision processing that will provide advances like the driverless car, algorithmically driven energy grid networks, and even management of cities. It allows for not just a greater capture of data, but also surveillance when we least expect it.

Today, with the expanding use of smartphones, sensors and wearables, implicit data capture is all the more achievable for firms. An important aspect of Big Data creation and the movement to automation will be the automated capture of data. Some important points to consider for your business when automating data capture:

Leverage implicit data capture from digital platforms like webpages and mobile devices. Being online is not just about selling online, but rather about learning about the customer and gathering new data through a rich customer interface!

Deploy a network of sensors to get data can is otherwise hard to capture via existing digital platforms. Consider Google with Nest and Progressive with its speedometer on cars, and various health insurance firms deploying wearables for policyholders.

Make rational decisions based on the data captured and be transparent. Nothing will upset a customer more than to know they were treated adversely and yet not know why. Be transparent with how you will use the data. This will be critical in areas like healthcare.

Embed data capture in your business processes and operations. Lots of business processes in operations capture information about customers and markets. Leverage that data for insights. Yelp and TripAdvisor and other community sites have made a business out of converting comments and experiences into rich data. It is automated data capture at work.

Professor Walker has provided these talks and programs to leading firms and governmental organizations. Click here to learn more about his talks, references from clients, options for customized talks and programs, and details on scheduling a program for your organization.

By Russell Walker, Ph.D.
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Russell Walker helps companies develop strategies to manage Risk and harness value through Analytics and Big Data. As Clinical Professor at the Kellogg School of Management of Northwestern University, Russell Walker has developed and taught leading executive programs on Big Data and Analytics, Strategic Data-Driven Marketing, Enterprise Risk, Operational Risk, and Global Leadership.
He founded and teaches the popular Analytical Consulting Lab and Risk Lab, experiential classes, which bring Kellogg MBAs together with real-world projects in Analytics and risk evaluation.
His is the author of the book From Big Data to Big Profits: Success with Data and Analytics (Oxford University Press, 2015) which examines data monetization strategies and the development of data-centric business models in the new digital economy. He is also the author of the award-winning text Winning with Risk Management (World Scientific Publishing, 2013), which examines the principles and practice of risk management as a competitive advantage.
Dr. Walker consults with firms on the topics of Big Data and Analytics, Risk Management, and International Business Strategy.
Russell Walker can be reached at:
russell-walker@kellogg.northwestern.edu
@RussWalker1492
russellwalkerphd.com

Welcome to Big Data to Big Profits

As Clinical Professor at the Kellogg School of Management of Northwestern University, and former Associate Director of the Zell Center for Risk Research, Russell Walker has developed and taught leading executive programs on Big Data and Analytics, Strategic Data-Driven Marketing, Enterprise Risk, Operational Risk, and Global Leadership.

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Welcome to Big Data to Big Profits

Russell Walker helps companies develop strategies to manage Risk and harness value through Analytics and Big Data.
As Clinical Professor at the Kellogg School of Management of Northwestern University, and former Associate Director of the Zell Center for Risk Research, Russell Walker has developed and taught leading executive programs on Big Data and Analytics, Strategic Data-Driven Marketing, Enterprise Risk, Operational Risk, and Global Leadership.